^Prese vtatio v ^Co upay - HB Reavis · PDF fileThis presentation (the ^Prese vtatio v _ has...

This presentation (the Prese tatio has been prepared by the company HB Reavis Holding S.à r.l. we or the Co pa yas a marketing material and constitutes neither an offer to sell, nor a solicitation to buy any securities, nor investment advicenor financial analysis. Any public offer of securities of the Company or its subsidiaries may be made solely by means and on the basis of a prospectusand/or other document, as applicable, prepared and published in accordance with the applicable laws and regulations.

Certain statements contained in this Presentation are forward-looki g , based on current view on our markets, activities and prospects and involverisks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Inaddition, we, through our management, from time to time, make forward-looking public statements concerning our expected future operations andperformance and other developments. All forward-looking statements included in this Presentation are made only as of the date hereof and norepresentation, assurance, guarantee or warranty is given in relation to them and the Company assumes no obligation to update any written or oralforward-looking statements made by us or on our behalf as a result of new information, future events or other factors.

Certain industry and market information in this Presentation has been obtained by the Company from third party sources.The Company has not independently verified such information and the Company does not provide any assurance as tothe accuracy, fairness or completeness of such information.

The Company is under no obligation to update or keep current the information contained in this Presentation, to correctany inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein,except to the extent it would be required to do so under the applicable law or regulation.

The information contained in this Presentation has not been independently verified and is, in any case,subject to changes and modifications.

In no event may the content of this Presentation be construed as any type of explicit or implicit representation or warranty made by the Company or,its representatives. Likewise, neither the Company nor any of its representatives shall be liable in any respect whatsoever for any loss or damage thatmay arise from the use of this Presentation or of any information contained herein or otherwise arising in connection with this Presentation.

This Presentation is not intended for distribution, whether directly or indirectly, in or into the United States of America and its citizens, Australia,Canada, Japan and any other jurisdiction in which the distribution of this Presentation is contrary to the applicable laws and regulation of suchjurisdiction.

• 24 years track record

• Net Asset Value CAGR (incl. dividend)

of 54.2% achieved with long-term

average Net Debt Leverage at 15.3%

• ~ 1 million sq m of delivered

Gross Leasable Area (GLA)

• 554 professionals across 7 countries

• Total assets €2.1bn

• 1.2m sq m of GLA in development

pipeline

• Operating Profit €235.3m

• Net Asset Value €1.2bn

Rank Company nameTotal Office Floorspace

(m2)

1 BNP Paribas Real Estate 377,012

2 Hines Europe 343,755

3 HB Reavis 273,000

4 OVG Real Estate 268,164

5 Hochtief Projektenwicklung 256,130

6 Skanska (CEE only) 229,000

7 Tishman Speyer 194,200

8 Altarea Cogedim 152,700

9 Land Securities 113,922

10 Unibail-Rodamco 112,053

*Source: PropertyEU ResearchSource: IFRS financials as of 31 December 2016 and Company Management

United

Kingdom

Poland Czech Republic Slovakia Hungary Germany Turkey

Div

est

ed

33 Central KonstruktorskaBusiness CenterGdanski Business Center AGdanski Business Center B

River Garden Office I Air Park Ostrava – Terminal A River Garden Office II/III

Bratislava Business Center I-IV Apollo Business Center I Apollo Business Center IV Aupark Shopping Center Bratislava Aupark Tower Bratislava Aupark Shopping Center ZilinaAupark Shopping Center PiestanyCity Business Center III-V Aupark Shopping Center Kosice Aupark Tower Kosice Forum Business Center I Logistics Center Svaty JurLogistics Center RacaLogistics Center PresovTwin City A

Vaci Corner Offices

Deliv

ere

d

Postępu 14 Gdanski Business Center CGdanski Business Center DWest Station I

MetronomAupark Hradec KraloveLogistics Center Lovosice

City Business Center I-IIApollo Business Center III, V Twin City BTwin City C

Und

er

Cons

truc

tion 33 Central

20 FarringdonCooper & Southwark

West Station II Varso 1Varso 2Varso Tower

Twin City Tower Stanica NivyNivy Tower

Agora TowerAgora Hub

Pla

nned

One Waterloo Burakowska Street IBurakowska Street II

VinohradskaRadlickaMercuriaAupark Shopping Center BrnoApollo Business Center Brno

Twin City Zone BTwin City Zone C I-VForum Business Center IIAlfa ParkRyba

BEM PalaceAgora C1Agora C2Agora C3

Source: Company Management

Slovakia

WARSAW - 377.7 K sq m Postępu 14 Business Center - 34.5 K sq mGdanski Business Center C - 22.7 K sq mGdanski Business Center D - 29.8 K sq m

West Station I - 30.6 K sq mWest Station II - 37.9 K sq m

Varso 1 & 2 - 74.9 K sq mVarso Tower - 70.3 K sq mBurakowska - 77.0 K sq m

PRAGUE - 102.9 K sq mMetronom - 34.1 K sq m

Vinohradska - 22.6 K sq mRadlicka - 28.5 K sq mMercuria - 17.7 K sq m

BUDAPEST - 164.7 K sq mAgora Tower - 35.6 K sq m

Agora Hub - 35.1 K sq mAgora C 1–3 - 62.6 K sq m

BEM Palace - 31.4 K sq m

LOVOSICE - 43.5 K sq mLogistics Center Lovosice - 43.5 K sq m

BRATISLAVA – 583.1 K sq mApollo Business Center III, V - 49.4 K sq m

Twin City B - 23.5 K sq mTwin City C - 23.6 K sq m

Twin City Tower - 34.7 K sq mStanica Nivy & Nivy Tower - 134.2 K sq m

Alfa Park - 175.8 K sq mTwin City Zone B and C I-V - 106.2 K sq m

Forum Business Center II - 16.6 K sq mRyba - 19.3 K sq m

LONDON - 123.9 K sq m33 Central (Sold) - 21.1 K sq m

20 Farringdon - 7.7 K sq mCooper & Southwark - 7.1 K sq mOne Waterloo - cca 88.0 K sq m BRNO - 83.5 K sq m

Aupark Shopping Center Brno - 31.5 K sq mApollo Business Center Brno - 52.0 K sq m

DELIVERED

291,700 sq m

UNDER CONSTRUCTION PLANNED

458,600 sq m 729,200 sq m

Hungary

Czech Republic

Poland

UnitedKingdom


•••

•

•

•

•

* Including Group functions

Note: Data as of 31 December 2016Source: IFRS financials as of 31 December 2016 and Company Management

United

Kingdom Poland

Czech

Republic Slovakia Hungary Germany Turkey Luxembourg

Operating Profit (€m) €19.3 €131.0 €46.7 €41.7 €0.2 - - -

In investment property (€m) €337.3 €546.6 €232.6 €528.6 €49.1 - - -

Developed property (sq m) - 214,946 160,942 596,162 21,603 - - -

Property under development (sq m) 35,981 260,046 152,280 486,746 164,262 - - -

Professionals 42 129 53 303* 21 1 2 3

••

Significant growth in GDV* driven by:

• Volume (GLA under construction), and

• Increased value of 1 sq m of GLA, mainly in Warsaw and in London

44

5

95

8

1,0

93

1,7

20

0

500

1000

1500

2000

2013 2014 2015 2016

16

3

23

4

19

8

32

3

0

100

200

300

400

2013 2014 2015 2016

2,7

27

4,1

01

5,5

07

5,3

35

0

1000

2000

3000

4000

5000

6000

7000

2013 2014 2015 2016

*Gross Development Value (GDV) means project market value at completion

Source: PwC audited figures 2013 – 2016; based on Valuation reports

Cooper & Southwark, LondonMercuria, PragueRadlicka, PragueRyba, BratislavaBEM Palace, Budapest

Gdanski Business Center D, WarsawTwin City B, BratislavaTwin City C, BratislavaWest Station I, WarsawAupark Hradec KraloveCentrum Bottova, Bratislava

133,900 sq m* GLA Gross Lease-up incl. renewals (and occupancy arrangements) of which: 126,200 sq m GLA New Leases

Full development cycle achieved across all countries of operation

Divestments achieved in Hungary, United Kingdom, Slovakia, Czech Republic, Poland


* Includes forward sale of 33 Central (21,100 sq m) building to Wells Fargo which is treated as new occupancy

**excludes forward sale of 33 Central building to Wells Fargo

Total transaction value

€Total transaction value


BEM Palace, Budapest

Prominent location on

Bem Square

Future GLA of c. 31,400 sq m

Future GDV of € 97.4m

Mercuria, Prague

Holesovice district

in Prague 7

Future GLA of c.17,700 sq m

Future GDV of € 2.2m

Ryba, Bratislava

Located in vicinity of

our Twin City project

Future GLA of c.19,300 sq m

Future GDV of € .0m

Radlicka

Business Center, Prague

Located in Smichov

district in Prague 5

Future GLA of approx. 28,500 sq m

Future GDV of € .

Cooper & Southwark,

London

Located in Southbank

Future GLA of approx. 7,100 sq m

Future GDV of € .

Twin City B, Bratislava

Delivered in Q2 2016

23,500 sq m of GLA

98% occupancy

Gdanski Business Center D,

Warsaw


29,800 sq m of GLA

88% occupancy

Twin City C, Bratislava


23,700 sq m GLA

100% occupancy

West Station I*, Warsaw

Delivered in Q4 201630,800 sq m GLA

93% occupancy

Aupark Shopping Center, Hradec

Kralove


22,700 sq m GLA

88% occupancy

Centrum Bottova, Bratislava


6,200 sq m GLA

100% occupancyNote: * Joint Venture project with PKP (Polish National Railways)

Occupancy as of April, 2017

16%

35%

16%

32%

2%

133,900

sq m of GLA


33 Central, London

Investor: Wells Fargo

Vaci corner offices, Budapest

Investor: Zeus Capital

Management

Aupark Shopping Center,

Hradec Kralove

Investor: HB Reavis CE REIF

Konstruktorska BC, Warsaw

Investor: Golden Star Estate

Twin City A, Bratislava

Investor: IAD Investments

River Garden II-III, Prague

Investor: Aviva Investors and LaSalle

Investment Managment

Logistics portfolio SK & CZ

Air Cargo Mosnov

Logistic Center Raca

Investor: Macquaire

Total transaction value


Aupark Piestany, Piestany

• 10,600 sq m

• Investor: New Europe

Property Investments

Logistics Portfolio

• 47,600 sq m

• Logistics Svaty Jur

• Logistics Maly Saris

• Investor: Macquarie

Total

transaction value

€

Total

transaction value

€

Gdanski BC Phase I, Warsaw

Investor: Savills IM on behalf

of sovereign wealth fund

TARGET LEVEL OF LEVERAGE

Optimal Net Debt to Total Assets 35%, Max 40%

Optimal Gross Debt to Total Assets 40%, Max 45%

DIVIDEND POLICY

Dividend Pay-Out up to 3% of NAV

OPTIMAL CASH RESERVE

Cash reserve target at minimum 5% of the balance sheet with additional reserve build-up

profile to cover future debt-bullet repayments well in advance

ACTIVE HEDGING POLICY

FX hedging for all known and estimated exposure 12M forward

Interest Rate hedging via fixed, embedded or active hedging covering 50 – 100% of total debt exposure

1) In FY 2014, the value of asset management does not include assets held for sale; however, includes the “joint-venture investment“ portfolio 2) Interest bearing liabilities from third parties (excl. other indebtedness and borrowings from Joint Venture projects) less cash to Group total assets

3) Operating profit excluding costs on borrowings from related parties, based on PwC audit report of IFRS

Key financial indicator(audited consolidated figures) 2012 2013 2014 2015 2016

Balance Sheet (€m) 1,440.4 1,530.1 1,806.1 2,089.3 2,112.3

Development /Investment Portfolio Split 1 40% 43% 45% 47% 50%

Cash (€m) 48.6 49.9 155.3 115.4 316.4

Net Debt Leverage 2 28.8% 29.8% 26.5% 29.7% 17.4%

Operating Profit 3 (€m) 64.9 103.0 132.6 302.5 235.3

Net Profit (€m) 53.2 80.0 88.2 239.4 107.5

Net Asset Value (€m) 843.6 881.9 963.7 1,187.2 1,220.6

Shareholders’ Return 7.8% 5.7% 10.8% 29.3% 6.9%

Source: IFRS financials as of 31 December 2016 and Company Management

29%40% 43% 45% 47% 50%

71%60% 57% 55% 53% 50%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

2011 2012 2013 2014 2015 2016

Balance sheet repositioning towards balanced split between development and income producing portfolio unlocking higher value creation.

980.6 1,280.0 1,306.5 1,305.1 1,839.8 1,700.9


SegmentNumber of

properties1

GLA*

(thousands sq m)

Contracted Rental

Income next 12M (€m) ERV**

(€m)Occupancy

(%)

Average remaining

lease term2) (Years)

Market value3)

(€m)

Office 13 304.3 26.2 58.1 87 6.4 763.0

Retail 1 22.7 3.7 4.8 85 5.9 81.1

Logistics 1 43.5 2.9 2.9 100 8.6 32.0

Total 15 370.5 32.8 65.8 88 6.6 876.1

Currently, HB Reavis owns and manages 15 properties1) with market value of EUR 876.1 million

*GLA = Gross Leasable Area

**ERV = Expected Rental Value

Source: Company management, as of December 2016, valuation reports

1) Including three assets managed on behalf of HB Reavis CE REIF that are consolidated within HB Reavis financials and JV project

2) Average remaining term includes break options as if the tenant would use the option.

3) Market value as of 12/2016 based on valuations without IFRS adjustments.

€ . * i € . i

Compressed yields achieved on projects completed in 2016 such as Aupark Hradec Kralove, Twin City B, Twin City C, GdanskiBusiness Center D

Partially offset by negative impact from higher yields on our UK assets due to Brexit impact

€20m driven by achieving higher exit values compared to book values on divestments

€94.5m driven by permitting and construction progress on Varso, Burakowska, West Station I-II, 33 Central, Agora, Stanica Nivy and Nivy Tower and Twin City Tower

€15m driven by achieving higher exit values compared to book values on divestments

€15m driven by positive repricing on income producing assets particularly due to Metronom and Gdanski Business Center C commercialization phase

*including revaluation gain on 33 Central and West Station I-II that are treated under the contract for works method according to IFRS


United Kingdom had lesser impact on our Operating profit compared to previous year due to:

• Negative yield repricing caused by Brexit

• Mitigated by positive advancement on the development of projects under construction and forward sale agreement on 33 Central

Czech Republic had bigger impact on our Operating profit compared to previous year due to:

• Due to gain on divestments of projects

• Commercialization of Metronom Business Center and Aupark Hradec Kralove

Poland was the biggest contributor to ourOperating Profit due to:

• Due to gain on divestment of projects

• Completion and further commercialization of buildings Gdanski BC C/D and West Station I

• Substantial development advancement on West Station II

• Permitting progress of the iconic VarsoPlace and Burakowska project

54%

0%

8%

18%

20%

Poland

Czech Republic

Hungary

Slovakia

UK

46%

27%

18%

3% 6%

Poland

Czech RepublicHungary

Slovakia

UK

Poland Czech RepublicUnited Kingdom


2012 2013 2014 2015 2016

Net Debt Leverage 28.8% 29.8% 26.5% 29.7% 17.4%

Net Debt / Operating profit 6.4x 4.4x 3.6x 2.1x 1.6x

6034

70 64 70

190

3330 40

95

€

€

€

€

€

2017 2018 2019 2020 2021 >2022

Loa s € Bo ds €

71%

29%

Note: Excluding debt from Joint Ventures projects in the amount of €36.5m that are treated according to Equity Method under IFRS


Exceptionally low leverage - as a result of successful divestment in the amount of more than €1bn, the group repaid more than €340m in debt and achieved net debt leverage ratio of 17.4% and Net Debt over Operating Profit ratio of 1.6 multiple

Bank Financing 486.9m

Bonds97.5m

28%

27%

36%

9%

Under construction

12 schemes currently under construction with Gross

Development Value of around €2.2 billion and Estimated Rental Value €122 million to be completed within 45 months

In pipeline

Value at completion of projects in the pipeline

estimated at €3.5 billion with Estimated Rental Value of €175 million

United

Kingdom

Hungary

Slovakia

Poland


*As of April 2017, using gross development values as of end 2016

Cooper & Southwark, London

• Delivery Q4 2017

• 7,100 sq m GLA

• Valuation at completion €114m

33 Central, London


• 21,100 sq m GLA


20 Farringdon Street, London


• 7,700 sq m GLA



West Station II*, Warsaw


• 37,900 sq m GLA


*Joint Venture project with PKP (Polish National Railways)

Varso Tower, Warsaw

• Delivery in Q2 2020

• 70,300 sq m GLA


Varso 2, Warsaw


• 44,800 sq m GLA


Varso 1, Warsaw


• 30,100 sq m GLA



Agora Tower, Budapest


• 35,100 sq m GLA


Agora Hub, Budapest


• 35,600 sq m GLA



Stanica Nivy, Bratislava

• Delivery in Q3 2020

• 103,000 sq m of GLA (incl. Bus Station)


Nivy Tower, Bratislava

• Delivery in 4Q 2019

• 31,200 sq m of GLA


Twin City Tower, Bratislava


• 34,700 sq m of GLA



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